Husqvarna — Interim / Quarterly Report 2010

Feb 23, 2011

YEAR-END REPORT 2010

Stockholm February 23, 2011

Magnus Yngen, President and CEO:

"Demand recovered during the year and we strengthened our market positions for outdoor products in Europe and for Construction. After several years of decline, demand recovered also in the US. Despite the recovery, sales and profitability in the region were weak as we had significantly lower listings. For the Group, full-year operating income and margin were significantly above last year's levels. Innovative new products and a strong focus on our dealer network were important contributors to the positive development.

Due to the seasonality of our operations, the fourth quarter accounts for a small share of annual sales and operating income and is mainly devoted to start-up of production for the next season. Although market conditions are improving, retailers were still cautious to build inventory in the fourth quarter.

In the fourth quarter, Europe & Asia/Pacific and Construction continued its positive development. For the Group, adjusted net sales increased five percent and operating income also improved.

We expect higher shipments to the trade in the first quarter of 2011, compared with the first quarter of 2010, due to improved listings and a continued focus on dealer sales. We also expect a continued recovery of end-user demand for forest, park and garden products as well as for construction products. Due to the strong SEK, we expect negative currency effects in 2011."

Fourth quarter

• Net sales increased to SEK 4,794m (4,732) and operating income improved to SEK -63m (-515).
• Operating margin improved to -1.3% (-10.9).
• Growth for Europe & Asia/Pacific and Construction offset lower sales for Americas.
• Operating income and operating margin improved for all business areas.

Full-year

• Strengthened market shares for park and garden products in Europe & Asia/Pacific and for construction products in North America.
• Strong growth for dealer channel sales.
• Net sales and operating income for Europe & Asia/Pacific and Construction increased, but decreased for Americas.
• Operating income increased by 57% to SEK 2,445m (1,560).
• Income for the period increased significantly to SEK 1,749m (903), or SEK 3.03 (1.64) per share.
• The Board proposes a dividend of SEK 1.50 (1.00) per share.
• Adjusted dividend policy: The dividend shall normally exceed 40% of income for the year (previous policy: 25–50%).

	Q4	Q4	Change, %			Jan-Dec Jan-Dec	Change, %
SEKm	2010	2009	As rep.	Adj.1	2010	2009	As rep.	Adj.1
Net sales, Group		4,794 4,732	1	5	32,240	34,074	-5	0
Europe & Asia/Pacific		2,609 2,475	5	10	16,621	16,594	0	6
Americas		1,571 1,649	-5	-3	12,944	14,845	-13	-7
Construction	614	608	1	5	2,675	2,635	2	6
EBITDA	232	-22	n.a	44	3,666	3,060	20	12
EBITDA margin, %	4.8	-0.5	-	-	11.4	9.0	-	-
Operating income, Group	-63	-515	n.a	n.a	2,445	1,560	57	23
Europe & Asia/Pacific	-5	-294	n.a	n.a	2,383	1,410	69	30
Americas	-39	-105	n.a	n.a	152	437	-65	-41
Construction	28	-71	n.a	n.a	82	-123	n.a	n.a
Operating margin, %	-1.3	-10.9	-	-	7.6	4.6	-	-
Income after financial items	-199	-548	64	-	2,051	1,094	87	-
Income for the period	-124	-452	73	-	1,749	903	94	-
Earnings per share, SEK2	-0.21	-0.79	73	-	3.03	1.64	85	-

Adjusted for items affecting comparability (including restructuring charges), changes in exchange rates and acquisitions/divestments. Items

affecting comparability are provided on page 12.

2 Due to the rights issue in 2009, the average number of shares has increased.

Husqvarna AB (publ) Box 7454 SE-103 92 Stockholm Sweden

Regeringsgatan 28 +46 8 738 64 00 556000-5331 www.husqvarna.com HUSQ A

Address Visiting address Telephone Reg. No. Web site NASDAQ OMX Stockholm HUSQ B

FOURTH QUARTER

Net sales

Net sales for the fourth quarter increased by 1% to SEK 4,794m (4,732). Adjusted for exchange-rate effects, sales increased by 5% or by SEK 213m. Sales prices were relatively stable. Europe & Asia/Pacific accounted for an adjusted sales increase of SEK 236m, Americas for an adjusted sales decrease of SEK -53m and Construction for an adjusted sales increase of SEK 30m. Efforts to grow sales in the dealer channel continued to be successful.

Operating income

Fourth quarter operating income amounted to SEK -63m (-515). Currency changes had a positive effect of approximately SEK 20m. The comparable figure for 2009 includes items affecting comparability amounting to SEK -340m. Thus, adjusted operating income increased by SEK 92m.

The increase in adjusted operating income was mainly a result of higher volumes and favorable channel and regional mix, which was slightly offset by higher selling and administrative costs. The operating margin, excluding items affecting comparability improved to -1.3% (-3.7).

Operating income and operating margin for all business areas improved. Excluding items affecting comparability, operating income and operating margin for Europe & Asia/Pacific and Construction improved, but decreased for Americas.

Changes in exchange rates, including both translation and transaction effects net of hedging, had a total positive effect on Group operating income of SEK 20m (46). Hedging contracts had a negative effect of SEK -8m (-61).

FULL YEAR

Net sales

Net sales declined by 5% to SEK 32,240m (34,074). Adjusted for exchange rate effects, sales increased 0.4% or by SEK 142m. Sales prices were relatively stable. Europe & Asia/Pacific accounted for an adjusted sales increase of SEK 894m, Americas for an adjusted sales decrease of SEK -913m and Construction for an adjusted sales increase of SEK 161m. Efforts to grow sales in the dealer channel were successful and dealer sales grew double digit in all markets.

Operating income

Operating income increased by 57% and amounted to SEK 2,445m (1,560). Currency changes had a positive effect of approximately SEK 150m and the net positive effect from items affecting comparability was SEK 245m. Adjusted operating income thus increased by SEK 490m.

The increase in adjusted operating income was mainly a result of favorable channel and regional mix, higher volumes and lower material costs, which was partly offset by higher costs for distribution and IT.

The operating margin, excluding items affecting comparability, increased to 8.2% (5.9). Operating income includes restructuring charges of SEK -207m for the closure of production facilities in North America and Greece and costs related to a legal case in North America. 2009 included items affecting comparability totaling SEK -452m related mainly to restructuring charges (see table on page 12).

Operating income and operating margin for Europe & Asia/Pacific and Construction increased, but decreased for Americas.

Changes in exchange rates, including both translation and transaction effects net of hedging, had a total positive effect on operating income with SEK 150m (30). Hedging contracts had a positive effect of SEK 80m (–109).

NET FINANCIAL ITEMS

Net financial items for the fourth quarter amounted to SEK -136m (-33) and for the full year to SEK -394m (-466). The full-year improvement is primarily due to lower net debt and lower interest rates during the first half of the year. The average interest rate on borrowings at the end of the year was 4.8% (3.2). The increase is due to a change in the currency mix of the net debt.

INCOME AFTER FINANCIAL ITEMS

Income after financial items for the fourth quarter improved to SEK -199m (-548) corresponding to a margin of -4.2% (-11.6). For the full year income after financial items increased by 87% to SEK 2,051m (1,094), corresponding to a margin of 6.4% (3.2).

TAXES

Taxes amounted to SEK -302m (-191), corresponding to a tax rate of 15% (18) of income after financial items. The tax rate is positively affected by utilization of tax-losses carried forward.

EARNINGS PER SHARE

Income for the fourth quarter improved to SEK -124m (-452), corresponding to SEK -0.21 (-0.79) per share after dilution. For the full year, income increased by 94% and amounted to SEK 1,749m (903), corresponding to SEK 3.03 per share (1.64).

OUTLOOK FOR THE FIRST QUARTER 2011

The Group's shipments to the trade in the first quarter of 2011 are expected to be higher compared to the first quarter of 2010.

Inventories of the Group's garden products at retailers and dealers at the end of the year are estimated to have been on the same low level as one year ago. The Group's listings with retailers for the 2011 season have been improved, both in North America and in Europe, in comparison to 2010. End-user demand is also expected to continue to recover. In 2010, the long winter delayed the start of the season and pre-seasonal shipments were partly pushed from the first to the second quarter.

OPERATING CASH FLOW

Operating cash flow for the full year amounted to SEK 962m (3,737). Inventories and trade receivables increased. The higher inventory resulted in a negative cash flow amounting to SEK -645m (1,678) and the higher trade receivables resulted in a negative cash flow of SEK -331m (694). The inventory increase is mainly a result of a temporary build-up of inventory to facilitate the ongoing restructuring of the manufacturing footprint. The increase in trade receivables is mainly explained by higher sales during the end of 2010 compared to end of 2009.

Operating cash flow SEKm	Q4 2010	Q4 2009	Jan-Dec 2010	Jan-Dec 2009
Cash flow from operations, excluding changes in
operating assets and liabilities	-19	-39	2,888	2,749
Changes in operating assets and liabilities	158	1,102	-613	1,897
Cash flow from operations	139	1,063	2,275	4,646
Cash flow from investments, excluding acquisitions	-452	-262	-1,313	-909
Operating cash flow	-313	801	962	3,737

FINANCIAL POSITION

Group equity as of December 31, 2010 increased to SEK 12,154m (12,082). Equity per share amounted to SEK 21.2 (21.1). Group equity was negatively affected by exchange differences on translating foreign operations to SEK.

Net debt as of December 31 decreased to SEK 5,600m (6,349). The major currencies used for debt financing are EUR, USD and JPY. The reduction in net debt was a result of the positive cash flow and changes in exchange rates. During the second quarter a dividend of SEK 574m was distributed to the shareholders. The impact on net debt due to changes in exchange rates was an increase of SEK 100m in the fourth quarter, however a decrease of SEK 700m for the full year 2010.

The net debt/equity ratio improved to 0.46 (0.52) and the equity/assets ratio to 42.8% (40.1).

Net debt SEKm	31 Dec 2010	31 Dec 2009
Interest-bearing liabilities	7,667	9,094
Liquid funds	2,067	2,745
Net debt	5,600	6,349

On December 31, 2010, long-term loans including financial leases amounted to SEK 6,985m (7,934) and shortterm loans including financial leases to SEK 309m (661). Long-term loans consist of SEK 3,208m (1,617) in issued bonds, and bank loans of SEK 3,583m (5,942). The issued bonds and the bank loans mature in 2012 and onwards. In addition to the above funding, Husqvarna has revolving credit facilities totaling SEK 10,000m, all of which are unutilized. The major parts of these facilities mature in 2013.

PERFORMANCE BY BUSINESS AREA

As of January 1, 2010, the external reporting comprises three business areas:

• Europe & Asia/Pacific (forest, park and garden products in Europe and the Asia/Pacific region)
• Americas (forest, park and garden products in North America and Latin America)
• Construction (global sales of products for the construction and stone industries).

The majority of the Group's sales are park and garden products, which show a distinct seasonality in terms of sales and income. The first half of the year normally accounts for around two thirds of annual sales, with the second quarter usually being the strongest. The fourth quarter is normally the smallest quarter in terms of both sales and income. Forestry products show stronger demand and somewhat higher sales during the second half of the year, while equipment for the construction industry normally shows a more even distribution of sales throughout the year.

	Q4	Q4	Change, %		Jan-Dec Jan-Dec		Change, %
SEKm	2010	2009	As rep.	Adj.	2010	2009	As rep.	Adj.
Net sales	2,609	2,475	5	10	16,621	16,594	0	6
Operating income	-5	-294	n.a	n.a	2,383	1,410	69	30
Operating margin, %	-0.2	-11.9	-	-	14.3	8.5	-	-

Europe & Asia/Pacific

Sales for Europe & Asia/Pacific in the fourth quarter increased 5%. Adjusted for exchange-rate effects sales increased 10%. For the full year, sales were unchanged. Adjusted for exchange-rate effects, sales for the full year increased 6%. Sales prices were relatively stable during the year.

Sales to the dealer channel developed strongly throughout the year. Most countries, except for UK and France, had higher sales than in the preceding year. Several new products, including Husqvarna branded lawn mowers, riders and an expanded Automower® range, contributed to the increase. Sales of Gardena branded watering products were also strong. Total market demand in the Europe and Asia/Pacific region is estimated to have increased compared to the preceding year. It is also estimated that the Group strengthened the market shares in several product categories, including lawn mowers and riders, during the year.

Operating income and operating margin improved in the fourth quarter. The higher operating income was mainly a result of higher sales and improved mix. The fourth quarter 2009 includes items affecting comparability amounting to SEK –188m. There were no items affecting comparability in the fourth quarter 2010. Adjusted operating income for the fourth quarter 2009 amounted to SEK -82m.

For the full year, operating income and operating margin increased substantially. The increase was mainly a result of higher volumes and improved mix. The mix improved as a result of better product and channel mix, as dealer sales grew more than retail sales.

Operating income for 2009 includes items affecting comparability amounting to SEK -300m. There were no items affecting comparability in 2010. Operating income, excluding items affecting comparability, increased to SEK 2,383m (1,710) and the corresponding operating margin increased to 14.3% (10.3).

Americas

	Q4	Q4	Change, %			Jan-Dec Jan-Dec	Change, %
SEKm	2010	2009	As rep.	Adj.	2010	2009	As rep.	Adj.
Net sales	1,571	1,649	-5	-3	12,944	14,845	-13	-7
Operating income	-39	-105	n.a	n.a	152	437	-65	-41
Operating margin, %	-2.5	-6.4	-	-	1.2	2.9	-	-

Sales for Americas in the fourth quarter decreased 5%. Adjusted for exchange-rate effects the decrease was 3%. For the full year, sales decreased 13%. Adjusted for exchange-rate effects, sales for the full year decreased by 7%. Sales prices were relatively stable during the year.

Total market demand in North America increased after four years of decline. Industry shipments increased for most product categories but chainsaws. Reduced listings with a major retailer in North America for the 2010 season had a negative effect on sales throughout the year. Efforts to grow sales in the dealer channel and with other retail accounts were successful, but could not fully compensate the reduced listings. Sales in the dealer channel increased double digit, however from a low level.

Operating income in the fourth quarter improved to SEK -39m (-105). Operating income in the fourth quarter 2009 included items affecting comparability related to restructuring charges of SEK -98m. There were no items affecting comparability in the fourth quarter 2010. Adjusted operating income for the fourth quarter 2009 amounted to SEK -15m. Excluding items affecting comparability, operating income was negatively affected by lower volumes, mix and higher costs for distribution.

For the full-year, operating income was negatively affected by lower volumes which to some extent were offset by improved mix. Costs for distribution and IT increased as well as costs for merchandising and marketing in association with efforts to grow sales to dealers.

Operating income for 2010 includes items affecting comparability amounting to SEK -160m (-98) of which SEK - 110m is related to the closure of the plant in Beatrice and SEK -50m to the settlement of an engine-capacity lawsuit. Excluding items affecting comparability, operating income amounted to SEK 312m (535) and the corresponding operating margin was 2.4% (3.6).

	Q4	Q4	Change, %			Jan-Dec Jan-Dec	Change, %
SEKm	2010	2009	As rep.	Adj.	2010	2009	As rep.	Adj.
Net sales	614	608	1	5	2,675	2,635	2	6
Operating income	28	-71	n.a	n.a	82	-123	n.a	n.a
Operating margin, %	4.6	-11.7	-	-	3.1	-4.7	-	-

Construction

Sales for Construction in the fourth quarter increased 1%. Adjusted for exchange-rate effects sales increased 5%. In the full year, sales increased 2%. Adjusted for exchange-rate effects, sales in the full year increased 6%, of which sales in the US accounted for the majority of the increase. Sales prices were relatively stable.

Total market demand for construction products improved in both North America and Europe during the year. Sales to all sales channels – rental companies, dealers and contractors – increased. A number of new products were successfully launched and the Group's market shares are estimated to have increased.

Operating income and margin in the fourth quarter improved, mainly as a result of higher volumes, improved mix and lower items affecting comparability. Operating income for the fourth quarter 2009 includes items affecting comparability amounting to SEK -54m. There were no items affecting comparability in the fourth quarter 2010. Adjusted operating income for the fourth quarter 2009 amounted to SEK -13m.

For the full year, operating income increased to SEK 82m (-123) and the operating margin improved to 3.1% (-4.7), mainly as a result of higher volumes as well as sales of new products with higher margins.

Operating income for the full year was charged with restructuring costs amounting to SEK -47m (-54). Operating income for the full year, excluding items affecting comparability, increased to SEK 129m (–69) and the corresponding operating margin increased to 4.8% (–2.6).

PARENT COMPANY

Net sales in 2010 for the Parent Company, Husqvarna AB, amounted to SEK 10,304m (8,694), of which SEK 7,768m (6,553) referred to sales to Group Companies and SEK 2,536m (2,141) to external customers. Income after financial items amounted to SEK 2,495m (2,933). Income for 2010 was SEK 2,051m (2,698).

Investments in tangible and intangible assets amounted to SEK 339m (290). Cash and cash equivalents amounted to SEK 642m (1,262) at the end of the year. Undistributed earnings in the Parent Company at the end of the period amounted to SEK 17,511m (16,753). A dividend payment to shareholders in the amount of SEK 574m (0) was made during the second quarter.

DIVIDEND POLICY

Husqvarna's dividend policy has been adjusted. The new policy is that the dividend shall normally exceed 40% of income for the year. Previously, the policy was to pay a dividend corresponding to between 25% and 50% of income for the year.

The proposed dividend of SEK 1.50 per share for 2010 corresponds to 49% of income for 2010.

REPURCHASE OF OWN SHARES

In April 2010, The Annual General Meeting in Husqvarna AB resolved to authorize the Board of Directors, during the period until the next Annual General Meeting, to repurchase so many B-shares that the Company, after each purchase, owns not more than 3% of the total number of shares.

During 2010, 1,270,000 B-shares were repurchased. The purpose is to ensure the Company's commitment with regard to existing Long Term Incentive programs. At year-end, Husqvarna owned 3,906,007 of its own Bshares, corresponding to 0.68% of outstanding shares.

CONVERSION OF SHARES

According to the company's articles of association, owners of A-shares have the right to have such shares converted to B-shares. Conversion reduces the total number of votes in the company. When such a conversion has occurred, the company is obligated by law to disclose any such changes.

During the fourth quarter of 2010, 8,520,574 A-shares were converted to B-shares at the request of shareholders. After the close of the fourth quarter, another 637,975 A-shares were converted to B-shares at the request of shareholders. The total number of votes thereafter amounts to 178,339,778.6.

The total number of registered shares in the company at year-end amounted to 576,343,778 shares of which 134,755,087 were A-shares and 441,588,691 were B-shares.

RESTRUCTURING

In 2010, the Group announced further restructuring to increase efficiency by consolidating the manufacturing footprint. The production facility in Beatrice, Nebraska, was closed and the production was transferred to the plant in Orangeburg, South Carolina. The production facility for construction products in Athens, Greece was also closed. Annual savings from the initiatives will amount to SEK 60m and will be realized gradually with full effect from the first quarter of 2012. Operating income was charged with SEK 157m, of which the closure of the Beatrice plant accounted for SEK 110m.

In October 2009, the Group announced the implementation of a number of structural changes during 2009– 2011. These measures are aimed at eliminating overlaps and increase efficiency within production and administration which involves consolidation of production in Sweden and the US, and of the sales organization in Europe & Asia/Pacific. The total cost of these measures amounts to SEK 399m and annual savings are expected to approximately SEK 400m, and will be realized gradually from the second half of 2010 with full effect from the beginning of 2012. Capital expenditure related to the restructuring is expected to approximately SEK 400m, of which a new plant in Poland will account for approximately SEK 250m.

In September 2008, an initiative to reduce fixed costs through personnel cut-backs was announced. The total costs for the cut-backs were SEK 369m and the annual savings are SEK 450m as of the third quarter 2009.

ANNUAL GENERAL MEETING 2011

The Annual General Meeting of Husqvarna AB (publ) will be held on 4 May 2011, in the Elmia Congress and Concert Hall in Jönköping, Sweden.

Shareholders who wish to have matters dealt with by the AGM should submit their proposals to the Board by email to board@husqvarna.se, or by post to Husqvarna AB, General Counsel, Box 7454, SE-103 92 Stockholm. Proposals must be received by the Company no later than 4 March 2011.

Proposals to the Annual General Meeting 2011

Dividend

The Board of Directors proposes a dividend for 2010 of SEK 1.50 (1.00) per share, corresponding to a total dividend payment of SEK 859m (574) based on the number of outstanding shares at the end of 2010. Monday 9 May 2011 is proposed as record date. The last day for trading in Husqvarna shares including the right to dividend for 2010 is Wednesday 4 May 2011.

Guidelines for remuneration of senior management

The Board proposes that the AGM adopt principles for remuneration and other conditions of employment for Husqvarna Group Management. The principles are largely unchanged from those approved in 2010.

Long-term incentive program 2011

The Board of Directors proposes that the Annual General Meeting adopt a new performance-based incentive program for a maximum of 50 senior managers. The program is based on similar principles as the previous programs for 2008, 2009 and 2010.

Repurchase of own shares

The Board of Directors proposes that the Annual General Meeting authorize the Board to acquire series Bshares totaling up to 3% of the total number of shares, and to pay for the shares in cash. The shares may be purchased only on the NASDAQ OMX Stockholm, in order to hedge the company's obligations, including employer contributions, pursuant to the company's long-term incentive programs and synthetic shares.

Authorization to issue new shares

The Board of Directors proposes that the Annual General Meeting authorizes the Board to resolve to issue not more than 57,634,377 B-shares (corresponding to 10% of the total number of shares) for payment in kind, on one or several occasions during the period until the next Annual General Meeting. The price for the new shares shall be based on the market price of the company's B-shares. The purpose of the authorization is to facilitate acquisitions where the consideration will be paid with own shares.

Changes to the Articles of Association

The Board proposes that the Annual General Meeting approves an amendment to the articles of association regarding the term of office for the auditor of the company.

The Nomination Committee's proposal to the meeting includes:

• Unchanged number of Board members (10) to be elected by the AGM.
• Re-election of Lars Westerberg, Peggy Bruzelius, Robert F. Connolly, Börje Ekholm, Magdalena Gerger, Tom Johnstone, Ulla Litzén, Ulf Lundahl, Anders Moberg, and Magnus Yngen.
• Re-election of Lars Westerberg as Chairman of the Board, and proposed Chairman of the AGM.
• Board fees totaling SEK 5,975,000, of which SEK 1,650,000 for the Chairman and SEK 475,000 for other members not employed by Husqvarna.
• Unchanged Committee fees, with SEK 100,000 for the Chairman in the Remuneration Committee and SEK 50,000 for each of the other members. SEK 175,000 for the Chairman in the Audit Committee and SEK 75,000 each for the other members.
• Unchanged principles for appointment of Nomination Committee for AGM 2012.

The full proposal will be included in the notice of the AGM, and published on Husqvarna's web site, www.husqvarna.com.

RISKS AND UNCERTAINTY FACTORS

A number of factors may affect Husqvarna's operations in terms of operational and financial risks. Operational risks are managed by the operative units, and financial risks by Group Treasury.

For more information on risk than stated below, see the annual report.

Operational risks

Operational risks include general economic conditions, as well as trends in consumer and professional spending, particularly in North America and Europe, where the majority of the Group's products are sold. An economic downturn in these markets may have an adverse effect on Group sales and earnings. Shifts in product technology as well as shifts in distribution structure could also have a negative impact on Group sales and earnings.

Demand for the Group's products is also dependent on weather conditions. Dry weather can reduce demand for such products as lawn mowers and tractors, but can stimulate demand for irrigation products. Demand for chainsaws normally increases after storms and during cold winters.

Husqvarna's operations are also subject to seasonal variations. Demand for consumer garden products and commercial lawn and garden products normally peaks in the second quarter, while the peak season for chainsaws is normally in the third quarter. Husqvarna has adapted its production processes and supply chain to respond to these conditions. However, parameters such as cash flow and production levels follow the seasonal variations in demand, which results in relatively greater risk exposure for the Group over short periods of time.

The Group is currently implementing a number of structural changes as well as a new organization. Restructuring and organizational changes always involve the risk of creating higher costs than anticipated and losing key personnel.

Financial risks

Financial risks refer primarily to exchange rates, interest rates, financing, and credit risks. Risk management within the Husqvarna Group is regulated by a financial policy established by the Board of Directors. A higher indebtedness resulting from the seasonality of the Group's operations involve greater exposure to changes in exchange rates and interest rates, as well as financing risks.

Acquisitions

Husqvarna has completed a number of acquisitions. Although the Group has historically demonstrated ability to successfully integrate acquired businesses, such integration always involves certain risks. Net sales can be adversely affected and costs can be higher than anticipated.

ACCOUNTING PRINCIPLES

Husqvarna applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and RFR 1 from the Swedish Financial Reporting Board.

The financial statements of the Parent Company have been prepared in accordance with the Swedish Annual Accounts Act and the accounting standard RFR 2 "Accounting for Legal Entities".

The accounting principles applied in this year-end report are described in Husqvarna's Annual Report. The annual report is available at www.husqvarna.com under Investor relations.

AUDITORS' REVIEW REPORT

This interim report has not been subject to review by the auditors.

Stockholm February 23, 2011

Magnus Yngen President and CEO

Consolidated income statement

	Q4	Q4	Jan-Dec	Jan-Dec
SEKm	2010	2009	2010	2009
Net sales	4,794	4,732	32,240	34,074
Cost of goods sold	-3,380	-3,610	-23,037	-25,423
Gross operating income	1,414	1,122	9,203	8,651
Margin, %	29.5	23.7	28.5	25.4
Selling expense	-1,111	-1,178	-5,232	-5,547
Administrative expense	-364	-457	-1,524	-1,541
Other operating income/expense	-2	-2	-2	-3
Operating income1	-63	-515	2,445	1,560
Margin, %	-1.3	-10.9	7.6	4.6
Financial items, net	-136	-33	-394	-466
Income after financial items	-199	-548	2,051	1,094
Margin, %	-4.2	-11.6	6.4	3.2
Taxes	75	96	-302	-191
Income for the period	-124	-452	1,749	903
Attributable to:
Equity holders of the Parent Company	-123	-452	1,739	899
Non-controlling interest in income for the period	-1	0	10	4
Basic earnings per share, SEK	-0.21	-0.79	3.03	1.64
Diluted earnings per share, SEK	-0.21	-0.79	3.03	1.64
Basic weighted average number of shares
outstanding, millions	572.6	573.6	573.4	548.6
Diluted weighted average number of shares,
millions	573.5	573.8	574.2	548.8

Consolidated comprehensive income statement

	Q4	Q4	Jan-Dec	Jan-Dec
SEKm	2010	2009	2010	2009
Income for the period	-124	-452	1,749	903
Other comprehensive income, net of tax:
Exchange differences on translating foreign
operations	-37	169	-1,056	-581
Cash flow hedges	14	-8	10	-1
Other comprehensive income, net of tax	-23	161	-1,046	-582
Total comprehensive income for the period	-147	-291	703	321
Attributable to:
Equity holders of the Parent Company	-148	-293	695	316
Non-controlling interest in comprehensive	1	2	8	5
1 Of which depreciation, amortization and
impairment	-295	-493	-1,221	-1,500

Consolidated balance sheet

SEKm	31 Dec 2010	31 Dec 2009
Assets
Property, plant and equipment	4,125	4,375
Goodwill	5,995	6,461
Other intangible assets	3,989	4,411
Investments in associates	5	6
Deferred tax assets	614	756
Derivatives	1	7
Financial assets	168	173
Total non-current assets	14,897	16,189
Inventories	7,000	6,706
Trade receivables	3,575	3,385
Derivatives	417	160
Tax receivables	335	671
Other current assets	529	540
Other short term investments	173	245
Cash and cash equivalents	1,476	2,333
Total current assets	13,505	14,040
Total assets	28,402	30,229
Assets pledged	42	45
Equity and liabilities
Equity attributable to equity holders of the Parent Company	12,154	12,082
Non-controlling interests	49	44
Total equity	12,203	12,126
Long-term borrowings	6,985	7,934
Deferred tax liabilities	1,571	1,870
Provisions for pensions and other post-employment benefits	992	1,116
Derivatives	39	17
Other provisions	707	740
Total non-current liabilities	10,294	11,677
Trade payables	2,810	2,854
Tax liabilities	340	594
Other liabilities	1,783	1,494
Short-term borrowings	309	661
Derivatives	334	482
Other provisions	329	341
Total current liabilities	5,905	6,426
Total equity and liabilities	28,402	30,229
Contingent liabilities	28	54

Consolidated cash flow statement

SEKm	Q4 2010	Q4 2009	Jan-Dec 2010	Jan-Dec 2009
Operations Income after financial items	-199	-548	2,051	1,094
Depreciation and amortization	295	329	1,180	1,325
Capital loss/Impairment	0	178	41	189
Change in accrued and prepaid interest	12	-17	11	-39
Provision for restructuring	-8	112	108	213
Taxes paid Cash flow from operations, excluding change in	-119	-93	-503	-33
operating assets and liabilities	-19	-39	2,888	2,749
Change in operating assets and liabilities
Change in inventories	-974	-852	-645	1,678
Change in trade receivables	1,184	2,106	-331	694
Change in trade payables	404	365	73	-345
Change in other operating assets/liabilities	-456	-517	290	-130
Cash flow from operating assets and liabilities	158	1,102	-613	1,897
Cash flow from operations	139	1,063	2,275	4,646
Investments
Acquisitions of operations	-	0	-	-43
Capital expenditure in property, plant and equipment	-341	-170	-991	-667
Capitalization of product development and software	-104	-96	-311	-247
Other	-7	4	-11	5
Cash flow from investments	-452	-262	-1,313	-952
Total cash flow from operations and investments	-313	801	962	3,694
Financing
Change in other short-term investments	208	-46	63	-243
Change in interest-bearing liabilities	101	-966	-1,250	-6,012
Rights issue	-	-	-	2,988
Dividend to shareholders	-	-	-574	-
Repurchase of shares	-59	-	-59	-
Dividend to non-controlling interests	-	-	-3	-4
Cash flow from financing		250 -1,012	-1,823	-3,271
Total cash flow	-63	-211	-861	423
Cash and cash equivalents at beginning of period	1,479	2,451	2,333	1,828
Exchange-rate differences	60	93	4	82
Cash and cash equivalents at end of period	1,476	2,333	1,476	2,333

Change in Group equity

		January - December 2010			January - December 2009
		Non			Non
	Equity	controlling	Total	Equity	controlling	Total
SEKm	holders	interests	equity	holders	interests	equity
Opening balance	12,082	44	12,126	8,772	43	8,815
Rights issue1	-	-	-	2,988	0	2,988
Share-based payment	10	-	10	6	-	6
Repurchase of own shares	-59	-	-59	-	-	-
Dividend	-574	-3	-577	-	-4	-4
Total comprehensive income	695	8	703	316	5	321
Closing balance	12,154	49	12,203	12,082	44	12,126

1 Repo rted net o f co sts asso ciated with the righs issue amo unting to SEK 71m, net o f tax.

Key data

	Q4	Q4	Jan-Dec	Jan-Dec
	2010	2009	2010	2009
Net sales, SEKm	4,794	4,732	32,240	34,074
Operating income, SEKm	-63	-515	2,445	1,560
Net sales growth, %	1	-8	-5	5
Gross margin, %	29.5	23.7	28.5	25.4
Operating margin, %	-1.3	-10.9	7.6	4.6
Working capital, SEKm	4,478	4,163	4,478	4,163
Return on capital employed, %	-	-	11.0	6.6
Return on equity, %	-	-	13.9	7.5
Earnings per share, SEK	-0.21	-0.79	3.03	1.64
Capital-turnover rate, times	-	-	1.7	1.6
Operating cash flow, SEKm	-313	801	962	3,737
Net debt/equity ratio	-	-	0.46	0.52
Capital expenditure, SEKm	445	266	1,302	914
Average number of employees	13,987 14,215		14,954	15,030

Items affecting comparability

SEKm		Q1	Q2	Q3	Q4	Full year
Restructuring charges	2010	-	-157	-	-	-157
	2009	-	-	-59	-340	-399
Costs for personnel cut-backs	2010	-	-	-	-	-
	2009	-35	-18	-	-	-53
	2008	-	-	-15	-301	-316
Legal settlement cost	2010	-50	-	-	-	-50
Total	2010	-50	-157	-	-	-207
	2009	-35	-18	-59	-340	-452
	2008	-	-	-15	-301	-316

Net sales by business area

	Q4	Q4	Change, %		Jan-Dec Jan-Dec		Change, %
SEKm	2010	2009	As rep.	Adj.	2010	2009	As rep.	Adj.
Europe & Asia/Pacific	2,609	2,475	5	10	16,621	16,594	0	6
Americas	1,571	1,649	-5	-3	12,944	14,845	-13	-7
Construction	614	608	1	5	2,675	2,635	2	6
Total	4,794	4,732	1	5	32,240	34,074	-5	0

Operating income by business area

	Q4	Q4	Change, %		Jan-Dec Jan-Dec		Change, %
SEKm	2010	2009	As rep.	Adj.	2010	2009	As rep.	Adj.
Europe & Asia/Pacific	-5	-294	n.a	n.a	2,383	1,410	69	30
Excl. items affecting comparability	-5	-105	n.a	n.a	2,383	1,710	39	30
Margin excl.
items affecting comparability, %	-0.2	-4.2	-	-	14.3	10.3	-	-
Americas	-39	-105	n.a	n.a	152	437	-65	-41
Excl. items affecting comparability	-39	-8	n.a	n.a	312	535	-42	-41
Margin excl.
items affecting comparability, %	-2.5	-0.5	-	-	2.4	3.6	-	-
Construction	28	-71	n.a	n.a	82	-123	n.a	n.a
Excl. items affecting comparability	28	-17	n.a	n.a	129	-69	n.a	n.a
Margin excl.
items affecting comparability, %	4.6	-2.8	-	-	4.8	-2.6	-	-
Total business areas	-16	-470	n.a	n.a	2,617	1,724	52	21
Excl. items affecting comparability	-16	-130	n.a	n.a	2,824	2,176	30	21
Margin excl.
items affecting comparability, %	-0.3	-2.7	-	-	8.8	6.4	-	-
Group common costs	-47	-45	n.a	n.a	-172	-164	-5	-5
Total Group	-63	-515	n.a	n.a	2,445	1,560	57	23
Excl. items affecting comparability	-63	-175	n.a	n.a	2,652	2,012	32	23
Margin excl.
items affecting comparability, %	-1.3	-3.7	-	-	8.2	5.9	-	-

Net assets by business area

	Assets		Liabilities		Net Assets
	31 Dec	31 Dec	31 Dec	31 Dec	31 Dec	31 Dec
SEKm	2010	2009	2010	2009	2010	2009
Europe & Asia/Pacific	15,564	16,115	4,014	3,914	11,550	12,201
Americas	6,826	6,835	1,609	1,987	5,217	4,848
Construction	3,161	3,286	565	641	2,596	2,645
Other	784	1,248	2,344	2,467	-1,560	-1,219
Total	26,335	27,484	8,532	9,009	17,803	18,475

Liquid assets, interest-bearing liabilities and equity is not included in the above table.

Other includes deferred taxes and Husqvarna's common group services such as Holding, Treasury and Risk M anagement.

Net sales by business area

SEKm		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2010	4,459	5,845	3,708	2,609	16,621
	2009	5,034	5,639	3,446	2,475	16,594
	2008	5,200	5,677	3,491	2,566	16,934
Americas	2010	4,028	4,863	2,482	1,571	12,944
	2009	5,470	5,142	2,584	1,649	14,845
	2008	4,052	3,777	2,556	1,881	12,266
Construction	2010	595	749	717	614	2,675
	2009	648	700	679	608	2,635
	2008	791	889	783	679	3,142
Total Group	2010	9,082	11,457	6,907	4,794	32,240
	2009	11,152	11,481	6,709	4,732	34,074
	2008	10,043	10,343	6,830	5,126	32,342

Operating income by business area

SEKm		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2010	732	1,145	511	-5	2,383
Excl. items affecting comparability	2010	732	1,145	511	-5	2,383
	2009	674	840	190	-294	1,410
Excl. items affecting comparability	2009	708	858	249	-105	1,710
	2008	957	1,130	317	-188	2,216
Excl. items affecting comparability	2008	957	1,130	323	-42	2,368
Americas	2010	81	202	-92	-39	152
Excl. items affecting comparability	2010	131	312	-92	-39	312
	2009	218	332	-8	-105	437
Excl. items affecting comparability	2009	219	332	-8	-8	535
	2008	229	158	14	-80	321
Excl. items affecting comparability	2008	229	158	14	-54	347
Construction	2010	1	11	42	28	82
Excl. items affecting comparability	2010	1	58	42	28	129
	2009	-67	-14	29	-71	-123
Excl. items affecting comparability	2009	-67	-14	29	-17	-69
	2008	63	80	34	-164	13
Excl. items affecting comparability	2008	63	80	43	-36	150
Group common costs	2010	-36	-39	-50	-47	-172
	2009	-39	-42	-38	-45	-164
	2008	-47	-47	-55	-40	-189
Excl. items affecting comparability	2008	-47	-47	-55	-39	-188
Total Group	2010	778	1,319	411	-63	2,445
Excl. items affecting comparability	2010	828	1,476	411	-63	2,652
	2009	786	1,116	173	-515	1,560
Excl. items affecting comparability	2009	821	1,134	232	-175	2,012
	2008	1,202	1,321	310	-472	2,361
Excl. items affecting comparability	2008	1,202	1,321	325	-171	2,677

Operating margin by business area

%		Q1	Q2	Q3	Q4	Full year
Europe & Asia/Pacific	2010	16.4	19.6	13.8	-0.2	14.3
Excl. items affecting comparability	2010	16.4	19.6	13.8	-0.2	14.3
	2009	13.4	14.9	5.5	-11.9	8.5
Excl. items affecting comparability	2009	14.1	15.2	7.2	-4.2	10.3
	2008	18.4	19.9	9.1	-7.3	13.1
Excl. items affecting comparability	2008	18.4	19.9	9.3	-1.6	14.0
Americas	2010	2.0	4.2	-3.7	-2.5	1.2
Excl. items affecting comparability	2010	3.3	6.4	-3.7	-2.5	2.4
	2009	4.0	6.5	-0.3	-6.4	2.9
Excl. items affecting comparability	2009	4.0	6.5	-0.3	-0.5	3.6
	2008	5.7	4.2	0.5	-4.3	2.6
Excl. items affecting comparability	2008	5.7	4.2	0.5	-2.9	2.8
Construction	2010	0.1	1.5	5.9	4.6	3.1
Excl. items affecting comparability	2010	0.1	7.8	5.9	4.6	4.8
	2009	-10.3	-2.0	4.3	-11.7	-4.7
Excl. items affecting comparability	2009	-10.3	-2.0	4.3	-2.8	-2.6
	2008	8.0	9.0	4.3	-24.2	0.4
Excl. items affecting comparability	2008	8.0	9.0	5.5	-5.3	4.8
Total Group	2010	8.6	11.5	5.9	-1.3	7.6
Excl. items affecting comparability	2010	9.1	12.9	5.9	-1.3	8.2
	2009	7.0	9.7	2.6	-10.9	4.6
Excl. items affecting comparability	2009	7.4	9.9	3.5	-3.7	5.9
	2008	12.0	12.8	4.5	-9.2	7.3
Excl. items affecting comparability	2008	12.0	12.8	4.8	-3.3	8.3

Information regarding earlier business area structure

As of Q1 2010 Husqvarna introduced a new business area reporting structure as described on page 4 in the Q1 interim report 2010. Net sales and operating income according to the earlier business area structure will be provided until Q4 2010.

Net sales according to earlier business area structure

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Products	2010	6,115	7,630	3,780	2,216	19,741
	2009	8,092	8,297	3,937	2,346	22,672
	2008	6,830	6,773	3,764	2,482	19,849
Professional Products	2010	2,967	3,827	3,127	2,578	12,499
	2009	3,060	3,184	2,772	2,386	11,402
	2008	3,213	3,570	3,066	2,644	12,493
Total Group net sales	2010		9,082 11,457	6,907	4,794	32,240
	2009		11,152 11,481	6,709	4,732	34,074
	2008		10,043 10,343	6,830	5,126	32,342

Operating income according to earlier business area structure

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Products	2010	363	910	-25	-339	909
Excl. items affecting comparability	2010	413	910	-25	-339	959
Excl. items affecting comparability	Margin, %	6.8	11.9	-0.7	-15.3	4.9
	2009	532	730	-191	-612	459
Excl. items affecting comparability	2009	532	730	-131	-412	719
Excl. items affecting comparability	Margin, %	6.6	8.8	-3.3	-17.6	3.2
	2008	727	745	-71	-438	963
Excl. items affecting comparability	2008	727	745	-65	-364	1,043
Excl. items affecting comparability	Margin, %	10.6	11.0	-1.7	-14.7	5.3
Professional Products	2010	451	448	486	323	1,708
Excl. items affecting comparability	2010	451	605	486	323	1,865
Excl. items affecting comparability	Margin, %	15.2	15.8	15.5	12.6	14.9
	2009	293	428	402	142	1,265
Excl. items affecting comparability	2009	328	446	401	282	1,457
Excl. items affecting comparability	Margin, %	10.7	14.0	14.5	11.8	12.8
	2008	522	623	436	6	1,587
Excl. items affecting comparability	2008	522	623	445	232	1,822
Excl. items affecting comparability	Margin, %	16.2	17.5	14.5	8.8	14.6
Group common costs	2010	-36	-39	-50	-47	-172
	2009	-39	-42	-38	-45	-164
Excl. items affecting comparability	2009	-39	-42	-38	-45	-164
	2008	-47	-47	-55	-40	-189
Excl. items affecting comparability	2008	-47	-47	-55	-39	-188
Total Group operating profit	2010	778	1,319	411	-63	2,445
Excl. items affecting comparability	2010	828	1,476	411	-63	2,652
Excl. items affecting comparability	Margin, %	9.1	12.9	5.9	-1.3	8.2
	2009	786	1,116	173	-515	1,560
Excl. items affecting comparability	2009	821	1,134	232	-175	2,012
Excl. items affecting comparability	Margin, %	7.4	9.9	3.5	-3.7	5.9
	2008	1,202	1,321	310	-472	2,361
Excl. items affecting comparability	2008	1,202	1,321	325	-171	2,677
Excl. items affecting comparability	Margin, %	12.0	12.8	4.8	-3.3	8.3

SEKm		Q1	Q2	Q3		Q4 Full year
Net sales	2010		9,082 11,457	6,907	4,794	32,240
	2009		11,152 11,481	6,709	4,732	34,074
	2008		10,043 10,343	6,830	5,126	32,342
Operating income	2010	778	1,319	411	-63	2,445
	Margin, %	8.6	11.5	5.9	-1.3	7.6
	2009	786	1,116	173	-515	1,560
	Margin, %	7.0	9.7	2.6	-10.9	4.6
	2008	1,202	1,321	310	-472	2,361
	Margin, %	12.0	12.8	4.5	-9.2	7.3
Income after financial items	2010	690	1,250	310	-199	2,051
	Margin, %	7.6	10.9	4.5	-4.2	6.4
	2009	590	944	108	-548	1,094
	Margin, %	5.3	8.2	1.6	-11.6	3.2
	2008	1,060	1,141	178	-612	1,767
	Margin, %	10.6	11.0	2.6	-11.9	5.5
Income for the period	2010	535	936	402	-124	1,749
	2009	464	761	130	-452	903
	2008	753	810	143	-418	1,288
Earnings per share, SEK	2010	0.92	1.62	0.70	-0.21	3.03
	2009	0.98	1.35	0.23	-0.79	1.64
	2008 1	1.65	1.77	0.32	-0.93	2.81

Net sales and income by quarter, Group

1 Earnings per share have been restated as an effect of the rights issue.

Net sales and operating income, 12 months rolling, group

SEKm		Q1	Q2	Q3	Q4
Net sales	2010	32,004	31,980	32,178	32,240
	2009	33,451	34,589	34,468	34,074
	2008	34,113	32,408	32,412	32,342
Operating income	2010	1,552	1,755	1,993	2,445
	Margin, %	4.8	5.5	6.2	7.6
	2009	1,945	1,740	1,603	1,560
	Margin, %	5.8	5.0	4.7	4.6
	2008	3,782	3,345	3,102	2,361
	Margin, %	11.1	10.3	9.6	7.3

Five-year review

	2010	2009	2008	2007	2006
Net sales, SEKm	32,240	34,074	32,342	33,284	29,402
Operating income, SEKm	2,445	1,560	2,361	3,564	3,121
Net sales growth, %	-5	5	-3	13	2
Gross margin, %	28.5	25.4	29.0	29.4	27.0
Operating margin, %	7.6	4.6	7.3	10.7	10.6
Return on capital employed, %	11.0	6.6	10.7	17.6	23.8 1
Return on equity, %	13.9	7.5	15.8	28.6	32.5 1
Capital turn-over rate, times	1.7	1.6	1.5	1.8	2.4
Operating cash flow, SEKm	962	3,737	2,013	1843	535 1
Capital expenditure, SEKm	1,302	914	1,163	857	890
Average number of employees	14,954	15,030	15,720	16,093	11,412

1 P ro forma.

PARENT COMPANY

Income statement

	Q4	Q4	Jan-Dec	Jan-Dec
SEKm	2010	2009	2010	2009
Net sales	1,888	1,645	10,304	8,694
Cost of goods sold	-1,545	-1,454	-8,027	-7,024
Gross operating income	343	191	2,277	1,670
Selling expense	-226	-145	-823	-846
Administrative expense	-116	-114	-473	-379
Other operating income/expense	122	4	126	4
Operating income	123	-64	1,107	449
Financial items, net	-133	810	1,388	2,484
Income after financial items	-10	746	2,495	2,933
Appropriations	-101	-6	-109	3
Income before taxes	-111	740	2,386	2,936
Taxes	69	101	-335	-238
Income for the period	-42	841	2,051	2,698

Balance sheet

SEKm	31 Dec 2010	31 Dec 2009
Non-current assets	30,227	31,093
Current assets	5,978	5,092
Total assets	36,205	36,185
Equity	18,686	17,928
Untaxed reserves	1,010	901
Provisions	110	133
Interest-bearing liabilities	13,028	14,255
Current liabilities	3,371	2,968
Total equity and liabilities	36,205	36,185

Number of shares

	Outstanding	Outstanding	Re-purchased
	A-shares	B-shares	B-shares	Total
Number of shares as of 31 December 2009	147,570,030	426,050,620	2,723,128	576,343,778
Conversion of A-shares into B-shares	-12,814,943	12,814,943	0	0
Shares alloted to senior managers for	0	87,121	-87,121	0
2007 LTI-program 1)
Share re-purchase	0	-1,270,000	1,270,000	0
Number of shares as of 31 December 2010 2	134,755,087	437,682,684	3,906,007	576,343,778

1) Long-term incentive program, see note 19 in the Annual report 2009 for more information.

2) After 31 December 2010, another 637,975 A-shares have been converted to B-shares.

DEFINITIONS

Capital indicators Capital employed	Total liabilities and equity less non-interest-bearing debt, including deferred tax liability.
Equity/assets ratio	Equity as a percentage of total assets.
Liquid funds	Cash and cash equivalents, short term investments and fair-value derivative assets.
Net assets	Total assets exclusive of liquid funds and interest-bearing financial receivables, less operating liabilities, non-interest-bearing provisions and deferred tax liabilities.
Net debt	Total interest-bearing liabilities less liquid funds.
Net debt/equity ratio	Net debt in relation to total adjusted equity.
Operating working capital	Inventories and trade receivables less trade payables.
Working capital	Current assets exclusive of liquid funds and interest-bearing financial receivables, less operating liabilities and non-interest-bearing provisions.
Other definitions Adjusted	As reported adjusted for items affecting comparability, changes in exchange rates and acquisitions/divestments
Average number of shares	Weighted number of outstanding shares during the period, after repurchase of own shares.
Capital expenditure	Property, plant and equipment and capitalization of product development and software.
Earnings per share	Income for the period divided by the average number of shares.
EBITDA	Earnings before interest, taxes, depreciation, amortization and impairment.
Gross margin	Gross operating income as a percentage of net sales.
LTM	Last twelve months.
Net sales growth	Net sales as a percentage of net sales in the preceding period.
Operating cash flow	Total cash flow from operations and investments, excluding acquisitions and divestments.
Operating margin	Operating income as a percentage of net sales.
Return on capital employed	Operating income plus financial income as a percentage of average capital employed.
Return on equity	Income for the period as a percentage of average equity.

TELEPHONE CONFERENCE

A telephone conference will be held at 16:00 CET on February 23, 2011. To participate in the telephone conference, please call +46 (0)8 5052 0110 or +44 (0) 20 7162 0077 ten minutes prior to the start of the conference. The conference call will also be audio cast live. To participate in the audio cast, log on to www.husqvarna.com/ir. A replay of the telephone conference will be available at www.husqvarna.com/ir.

ANNUAL REPORT 2010

Husqvarna's annual report for 2010 will be published on www.husqvarna.com/ir during week 11, 2011.

DATES FOR FINANCIAL REPORTS

April 19, 2011 Interim report for January – March 2011 July 19, 2011 Interim report for January – June 2011 October 20, 2011 Interim report for January – September 2011

CONTACTS

• Bernt Ingman, Chief Financial Officer, +46 8 738 75 05
• Boel Sundvall, SVP Corporate Communications & IR, +46 8 738 70 18
• Tobias Norrby, Investor Relations Manager, +46 8 738 83 35
• Husqvarna Press Hotline, +46 8 738 70 80.

This interim report comprises information which Husqvarna is required to disclose under the Securities Markets Act and/or the Financial Instruments Trading Act. It was released for publication at 14:00 CET on February 23, 2011.

Factors affecting forward-looking statements

This report contains forward-looking statements in the sense referred to in the American Private Securities Litigation Reform Act of 1995. Such statements comprise, among other things, financial goals, goals of future business and financial plans. These statements are based on present expectations and are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, a material reduction in sales by important distributors, success in developing new products and in marketing, outcome of product responsibility litigation, progress in terms of reaching the goals set for productivity and efficient use of capital, successful identification of growth opportunities and acquisition objects, integration of these into the existing business and successful achievement of goals for making the supply chain more efficient.